Jakarta-Coal mining company, PT Harum Energy Tbk (HRUM) target of coal production will increase to 10 million tonnes, up from last year's production figures which are in the level of 7.5 million tons of coal.

"Plan for our production this year will be above 10 million tonnes,"explained Director of Energy Harum Roy Antonio Gunara in Investor Day at the Grand Hyatt Hotel, Jakarta, Thursday (19/05/2011).

For information, this year Harunm Energy this year budgeted capex of USD 30 million to improve the quality of road transport, the completion of construction of new coal crusher units, construction of port facilities and additions to the fleet of tugs and barges.

He explained that if the company would increase the amount of capital expenditure if experiencing shortages. "There will be little additional capex for infrastructure development, but not significant, we can meet our internally generated cash"he concluded.

Company recorded revenue in the first quarter amounted to Rp1, 5 billion or an increase of 69 percent from Rp895 billion in revenue last year.

"These revenues derived from the increase in average selling price of coal which increased selling prices in the first quarter reached USD88 per ton," he added.

Furthermore, he also stated that due to increase in the average selling price of this coal, resulted in an increase in net profit margin for the first quarter also rose 20 percent from figures last year that only 15 percent.